Oil Market and Optimism!

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US Inventories decrease and Caixin Manufacturing PMI Increase!

By: Ahura Chalki

WTI touched $40 once more at overnight trading, after API report. The American Petroleum Institute report confirmed -8.156M barrels in inventory levels of US crude oil, gasoline, and distillate stocks. Asian season also had another positive news for the energy market. Caixin Manufacturing PMI for June published above 50, at 51.2, the highest number after hitting by COVID-19 in February and it helped the market to hold the price at this level.

For today, eyes will be on the EIA report, as well as US “ISM Manufacturing PMI” for June, which will give us a better idea of market outlook on the manufacturing section. Better than expected will push the price higher for Oil, however, probably the market will be more caution since tomorrow we will have NFP and Jobless claims together, the data which can help us to trace the market and changes there. As it is expecting, if NFP data beat the expectations above 3M, WTI price will have door to raise more up to $45.

Technical overview – H1 Char

CCI at 50, a price above the main EMA’s and RSI at 57, technical indicators mostly remain of more bullish, while Stochastic by cutting down the signal line with mainline, signaling of correction here. 50 H-MA at 39.20 is the immediate support, while $40 is still key and psychological resistance.

Pivot point: 39.54

Resistance levels: 40.30 / 40.75

Support levels: 39.05 / 38.30

Today, the expected trading range is between 38.30 support and 40.75 resistance.


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